The African Development Bank (AfDB) Group has launched a project to support development of domestic debt markets and financial systems in four West African Monetary Zone (WAMZ) countries, namely, the Gambia, Sierra Leone, Guinea and Liberia.
The Bank announced on Thursday that it had approved a grant of about US$2 million for the project.
Funded from the Bank’s Transition Support Facility, the project will provide technical assistance and capacity building to develop domestic debt markets in the four countries.
According to the Bank’s announcement, it will support the deepening of primary debt markets, improvement of debt market infrastructure, enhancement of institutional capacity in relevant agencies and authorities and a broadening of the investor base.
“We are delighted with the partnership with the African Development Bank to support financial systems development in the WAMZ, particularly in the area of technical assistance and institutional capacity building. It is our desire to see further deepening in financial integration and cross border operations in the Zone,” said Dr. Olorunsola Olowofeso, Director General of the WAMI, which is the implementing agency on behalf of the four countries.
Developing debt markets will underpin the emergence of effective capital markets in the region – a driver of investment and economic growth.
“Debt market development will facilitate increased intermediation of capital, both for public and private entities, and is aligned with our vision for the emergence of well-functioning and resilient financial and capital markets in African countries,” said the AfDB’s Director for Financial Sector Development Department, Stefan Nalletamby.
The WAMI will cooperate closely with the participating countries to implement the project, which builds on the Bank’s earlier WAMZ payment systems project to support the upgrade of central bank payment systems in the four countries.
The AfDB funding will also complement existing initiatives to enhance the development of financial systems in the WAMZ countries.